Top 3 Challenges in the Business Services Industry

What do your peers think about Business Services Industry?

The professionals of the business services industry we surveyed cited managing regulatory and legislative changes as their sector main challenges. On top of that, increasing competition creates additional pressure on companies in the industry as they face issues in finding new customers (and ways to promote their services) and keeping them loyal.

Business Services Top 3 peer challenges

Regulations and Legislation

One of the biggest challenges posed are stringent regulations, tighter legal issues and reforms. Whether these regulations have to do with safety procedures (for construction services for instance), environmental aspects (e.g. what kind of motor engines can be used by a delivery companies) or other, they must be taken into consideration in a company’s risk management initiatives.

Customer Acquisition and Retention

Finding tactics for attracting and retaining customers as well as finding ways to get in touch with them to promote a service. Technology helps firms find innovative solutions to acquire new customer and more customized ways to communicate with their clients.

Competition

Rising competition make it increasingly important to have a point of differentiation from other companies. Prices is a good way to differentiate an offer from its competitors. However quite often in certain industry, an intense battle for low prices can make it difficult for small companies to keep up with their larger rivals.

Other Challenges ­

Maintaining reasonable margins in performance-based advertising

Digital marketing

Asset management

Research-­based trends and short-term forecast

Research shows that emerging technologies and cultural shifts produce significant challenges to the insurance industry. New technologies and services, such as pay­-per-­usage services, are creating not only opportunities but challenges as well for insurance companies. By 2020, the global usage based insurance market penetration will be 15% compared to now, <1% (Deloitte, EY).